Sterling consolidated
gains this morning and was set to snap a three Sterling consolidated gains on
Friday and was set to snap a three-week losing streak as investors eyed
last-minute talks between the United Kingdom and the European Union on possible
changes to the Brexit withdrawal agreement.

The European Union’s Brexit negotiator, Michel Barnier, said he could not rule out the possibility that Britain’s EU withdrawal be pushed back.

Britain is due to
leave the EU on March 29, but Prime Minister Theresa May is seeking further
concessions on her Brexit deal in hope of winning the support of lawmakers
before putting it to another vote in parliament.

If she fails, May will
have to decide whether to delay Brexit or endanger the economy by leaving
without a deal.

May has promised to
give parliament a chance to decide what to do about Brexit on Feb. 27 unless
she can bring back a deal.

It seems like next week will be a big week
for the UK, we expect major volatility in the currency markets.